Salary Hike Calculator (After-Tax Delta)
A 30% hike on paper rarely lands as 30% in your bank account. This calculator shows the percentage hike and the actual after-tax monthly increase — across India (new/old regime) and UAE (zero income tax).
Inputs
Why headline % ≠ in-hand %
- Higher CTC pushes you into a higher tax slab — marginal rate jumps to 20%, 25%, 30%
- 87A rebate may stop applying once taxable crosses ₹12 L
- Employer-side costs (PF, EPS, gratuity provision) eat into the hike before it reaches gross
- For UAE expats: hike is fully retained (no income tax)
Frequently asked questions
I got a 30% hike but my take-home went up only 22%. Why?▾
Crossing the ₹12 L taxable threshold means losing the 87A rebate (₹60k/yr lost). Crossing ₹16 L pushes you into 20% slab. The marginal tax rate increases faster than the slab average, so each rupee hike is taxed harder than the previous one.
Should I prefer cash hike or stock options?▾
Cash hike: predictable, gets taxed at slab rate. RSUs/ESOPs: taxed twice (perquisite at vest + capital gains at sale), but unlocked upside if company grows. Pure cash is better for risk-averse; equity for high-growth bets.
Does the calc account for revised PF contribution?▾
Yes — when CTC increases, statutory PF (12% on basic up to ceiling) is recalculated. Most companies cap basic at ₹15k for PF (the statutory ceiling), so PF deduction often doesn't move with hike.